Understand and critique the assumptions underlying Markov multiple state models for long-term insurance benefits.
Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Survival Models for Contingent Cash Flows. 8 min read, ~1,241 words.
Markov property: future transitions depend only on current state and age, not on duration in state or path taken. Transition intensities exist, are finite, and depend on age and current state only. States are exhaustive and mutually exclusive; the life is in exactly one at every instant. At most one...
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- 1c
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